SHENZHEN, China, Dec. 23, 2025 (GLOBE NEWSWIRE) -- CDT Environmental Technology Investment Holdings Limited (Nasdaq: CDTG) ("CDT", the "Company", or "we"), a leading provider of waste treatment systems and services throughout China, today reports its unaudited interim financial results for the six months ended June 30, 2025, and provides updates on key business developments.
All amounts are expressed in US dollars unless otherwise stated.
2025 Unaudited Interim Financial Results and Business Update
- Revenues decreased by approximately $5.4 million, or 42.3%, to approximately $7.3 million for the six months ended June 30, 2025, from approximately $12.7 million for the same period in 2024. The decline was driven by three factors:
(i) reduced external demand for the Company's traditional environmental engineering services amid the PRC economic slowdown; and
(ii) the Company's deliberate strategic shift to scale back on legacy projects with excessively long receivable cycles, reallocating resources toward its new green hydrogen and organic waste-to-energy initiatives.
(iii) decrease in the number and timing of project revenue recognitions, as six project contracts contributed revenue during the comparable prior-year period, whereas only four projects contributed revenue during the current period, with certain remaining projects not yet meeting revenue recognition criteria. Among the four projects recognized in the current period, except for the Guankou project phase 6, the other three projects had reached over 95% completion and were in their final stages, resulting in limited incremental revenue recognized during the period. - Gross profit decreased by approximately $1.6 million, or 35.1%, to approximately $2.9 million for the six months ended June 30, 2025 from approximately $4.5 million for the six months ended June 30, 2024. The decrease in gross profit is primarily due to a decrease in sewage treatment systems revenue. For the six months ended June 30, 2025 and 2024, our overall gross profit percentage was 39.9% and 35.5%, respectively. The increase in gross profit percentage of 4.4% was primarily due to the following:
(i) The approximately 4.8% increase in the gross profit margin of sewage treatment systems was primarily attributable to the Company's engagement in a new project that generated approximately $3.1 million in revenue with a relatively higher gross profit margin of 40.3%.
(ii) This increase was partially offset by a 4.7% decrease in the gross profit margin of sewage treatment services and other revenue, primarily due to higher labor and material costs. - Total operating expenses increased by approximately $1.4 million, or 51.9%, to approximately $4.1 million for the six months ended June 30, 2025, from approximately $2.7 million for the same period in 2024.
- The Company reported a net loss of approximately $1.3 million, or $0.11 per share, for the six months ended June 30, 2025, compared to net income of $1.4 million, or $0.14 per share, for the same period in 2024. The swing from profit to loss was primarily due to:
(i) lower revenue from reduced project activity amid weakened market demand; and
(ii) the recognition of $2.1 million in non-cash stock-based compensation expense related to the Company's 2025 Equity Incentive Plan, under which shares were granted to key employees and advisors and accounted for as compensation in accordance with ASC 718.
Business Update
As of June 30, 2025, the Company had three projects in backlog:
- the Sichuan Anya Project,
- the Xinjiang Project, and
- Phase VI of the Guankou Project.
Both the Sichuan Anya and Xinjiang Projects were signed and commenced in August 2024. Phase VI of the Guankou Project is a supplemental agreement to the existing Guankou Project, which was signed and commenced in April 2024, and represents an incremental scope under the original contract-it does not constitute a new, standalone project. The combined tentative contract value of these three projects is approximately $19.6 million.
Green Hydrogen Initiative
- Strategic move into green hydrogen: As announced on November 20, 2025, the Company initiated a new growth opportunity with its shift to become a provider of urban and rural organic waste resource utilization solutions and clean energy.
- Technology and partnerships: The Company's plan is to utilize high-temperature gasification technology to convert organic waste into syngas, which can then be purified to produce hydrogen. In May 2025, the Company appointed a senior expert from the Guangzhou Institute of Energy Conversion, Chinese Academy of Sciences, as Chief Scientist for the Company's new energy initiative, establishing a technical collaboration with the Guangzhou Institute of Energy Conversion, Chinese Academy of Sciences.
- Addressing market demand: The initiative aims to capitalize on the significant demand for organic waste treatment in China and the rapidly growing hydrogen energy market.
- Diversified revenue streams: The Company's new "EPC engineering + long-term operation" business model includes revenue from waste treatment fees as well as expected future sales of energy products like green hydrogen, clean industrial steam, and grid-connected electricity.
Li Yunwu, CEO of CDT, said "Our first half 2025 performance was challenging as we continued to experience economic headwinds in the PRC market that have impacted new infrastructure projects and delayed some that are in the pipeline. Despite these challenges and the resulting volume pressure, we achieved 250 basis points of gross profit margin expansion compared to the same period last year through the restructuring initiatives we undertook in 2024 and other cost-saving measures. As economic conditions in China stabilize, we believe we remain well positioned to capitalize on opportunities associated with favorable, long-term secular trends including water conservation, safety and regulation.
Mr. Li added, "Even as we face an unpredictable operating environment in the near-term with soft end market demand, we are taking proactive and strategically targeted steps to leverage our core operational capabilities through technological innovation and partnerships. Our recently announced strategic initiative to support the growth of the hydrogen economy is an integral part of our planned transformation and broader strategy to participate in new energy by commercializing operations of organic solid waste-to-hydrogen production facilities in China. We believe our collaborations with leading scientific organizations and government regulatory bodies have created a foundation for the Company to accelerate the transition to a hydrogen economy. We expect to report several milestones related to our green hydrogen initiative including advancements in the Company's hydrogen enabling technologies, as well as progress in executing several customers' hydrogen projects and new partnerships in the sector.
We believe the actions we have taken to streamline our operations, along with our planned long-term investments in our new energy growth initiatives, are expected to deliver value to customers and improve returns for shareholders."
About CDT Environmental Technology Investment Holdings Limited
CDT, headquartered in Shenzhen, China, is a leading national player in China's waste treatment sector that designs, develops, manufactures, sells, installs, operates and maintains sewage treatment systems and provides sewage treatment services in China, and is dedicated to promoting sustainable development through innovative solutions. Founded by pioneers in waste treatment, CDT aims to advance next-generation technologies that directly address environmental challenges and promote sustainable solutions. CDT is a recognized brand in China and is committed to innovation and customer satisfaction.
CDT's mission is to help its customers achieve their critical infrastructure objectives while enabling positive changes in technological environmental protection. It collaborates with industry leaders, environmental experts, and stakeholders to develop and implement advanced waste treatment solutions. Recently listed on the Nasdaq Capital Market, CDT is a prominent player in the waste treatment market, capable of providing comprehensive solutions to diverse customer needs, and has completed more than 150 plants across China.
For more information, please visit CDT's website at https://www.cdthb.cn.
Forward Looking Statements
This press release contains forward-looking statements that are based on the beliefs and assumptions of the management of CDT and on information currently available to such management. These forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond CDT's control. When the Company uses words such as "may," "should," "will," "future," "expect," "anticipate," "project," "estimate," "believe," and "intend," or similar expressions that do not relate solely to historical matters, it is intended to identify forward-looking statements. All statements, other than statements of historical fact, contained in this press release, including statements regarding future events, future financial performance, business strategy and plans, and objectives of CDT for future operations, are forward-looking statements. Although CDT does not make forward-looking statements unless it believes it has a reasonable basis for doing so, CDT cannot guarantee their accuracy. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, which may cause the actual results, levels of activity, performance or achievements of CDT and its markets to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Further information regarding these and other risks, uncertainties, or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. For these reasons, among others, investors should not place undue reliance on any forward-looking statement. CDT undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that arise after the date hereof, whether as a result of new information, future events or otherwise, except as may be required by applicable law.
For more information, please contact:
Investor and Media Contact
United States
PCG Advisory
Kevin McGrath
Tel: +1-646-418-7002
Email: kevin@pcgadvisory.com
| CDT ENVIRONMENTAL TECHNOLOGY INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| June 30, | December 31, | ||||||
| 2025 | 2024 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS | |||||||
| Cash | - | 175,877 | - | 124,379 | |||
| Accounts receivable, net | 65,238,735 | 45,188,231 | |||||
| Other receivables, net | 239,560 | 424,313 | |||||
| Other receivables - related parties | 135,920 | 123,532 | |||||
| Contract assets | 31,126,553 | 31,438,860 | |||||
| Prepayments and other current assets, net | 488,969 | 405,136 | |||||
| Total current assets | 97,405,614 | 77,704,451 | |||||
| OTHER ASSETS | |||||||
| Property and equipment, net | 1,182,693 | 1,291,322 | |||||
| Intangible assets, net | 715 | 5,628 | |||||
| Deferred tax assets, net | 1,305,492 | 1,208,689 | |||||
| Contract assets, noncurrent | 8,525,057 | 8,550,498 | |||||
| Escrow | 600,000 | 600,000 | |||||
| Total other assets | 11,613,957 | 11,656,137 | |||||
| Total assets | - | 109,019,571 | - | 89,360,588 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Accounts payable | - | 40,192,963 | - | 36,347,893 | |||
| Short-term loans - banks | 1,321,665 | 1,814,551 | |||||
| Short-term loans - third parties | 840,388 | 836,765 | |||||
| Short-term loans - related parties | 3,183,506 | 2,794,894 | |||||
| Other payables and accrued liabilities | 2,948,482 | 2,220,896 | |||||
| Other payables - related party | 254,173 | 256,863 | |||||
| Contract liabilities | 13,691,295 | 28,026 | |||||
| Taxes payable | 7,878,159 | 7,408,674 | |||||
| Total current liabilities | 70,310,631 | 51,708,562 | |||||
| OTHER LIABILITIES | |||||||
| Long-term loan - bank | 279,384 | 213,969 | |||||
| Total other liabilities | 279,384 | 213,969 | |||||
| Total liabilities | 70,590,015 | 51,922,531 | |||||
| COMMITMENTS AND CONTINGENCIES | |||||||
| SHAREHOLDERS' EQUITY | |||||||
| Ordinary shares, $0.0025 par value, 20,000,000 shares authorized, 10,825,000 and 9,200,000 shares issued and outstanding as of December 31, 2024 and 2023, respectively | 30,813 | 27,063 | |||||
| Additional paid-in capital | 13,719,883 | 11,578,633 | |||||
| Statutory reserves | 3,667,369 | 3,433,589 | |||||
| Retained earnings | 22,959,457 | 24,455,403 | |||||
| Accumulated other comprehensive loss | (2,089,346 | - | (2,210,909 | - | |||
| Total CDT Environmental Technology Investment Holdings Limited shareholders' equity | 38,288,176 | 37,283,779 | |||||
| Noncontrolling interests | 141,380 | 154,278 | |||||
| Total shareholders' equity | 38,429,556 | 37,438,057 | |||||
| Total liabilities and shareholders' equity | - | 109,019,571 | - | 89,360,588 | |||
| The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. | |||||||
| CDT ENVIRONMENTAL TECHNOLOGY INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||
| For the Six Months Ended | |||||||
| June 30, | |||||||
| 2025 | 2024 | ||||||
| REVENUES | |||||||
| Sewage treatment systems | - | 6,762,644 | - | 12,066,255 | |||
| Sewage treatment services and others | 556,579 | 620,453 | |||||
| Total revenues | 7,319,223 | 12,686,708 | |||||
| COST OF REVENUES | |||||||
| Sewage treatment systems | 4,088,886 | 7,869,468 | |||||
| Sewage treatment services and others | 308,864 | 315,405 | |||||
| Total cost of revenues | 4,397,750 | 8,184,873 | |||||
| GROSS PROFIT | 2,921,473 | 4,501,835 | |||||
| OPERATING EXPENSES: | |||||||
| Selling | 102,096 | 25,725 | |||||
| General and administrative | 1,191,360 | 1,361,481 | |||||
| Research and development | 31,918 | 34,706 | |||||
| Stock-based compensation | 2,145,000 | 454,250 | |||||
| Provision for (Recovery from) credit loss, net | 588,484 | 795,757 | |||||
| Total operating expenses | 4,058,858 | 2,671,919 | |||||
| INCOME FROM OPERATIONS | (1,137,385 | - | 1,829,916 | ||||
| OTHER INCOME (EXPENSE) | |||||||
| Interest income | (6,814 | - | 138 | ||||
| Interest expense | (39,200 | - | (69,446 | - | |||
| Other (expense) income, net | 89,556 | 58,212 | |||||
| Total other (expense) income, net | 43,542 | (11,096 | - | ||||
| INCOME BEFORE INCOME TAXES | (1,093,843 | - | 1,818,820 | ||||
| INCOME TAXES EXPENSE | 214,668 | 401,401 | |||||
| NET (LOSS) INCOME | (1,308,511 | - | 1,417,419 | ||||
| Less: net loss attributable to noncontrolling interest | (46,345 | - | (51,609 | - | |||
| NET (LOSS) INCOME ATTRIBUTABLE TO | |||||||
| CDT ENVIRONMENTAL TECHNOLOGY INVESTMENT HOLDINGS LIMITED | - | (1,262,166 | - | - | 1,469,028 | ||
| NET(LOSS) INCOME | (1,308,511 | - | 1,417,419 | ||||
| FOREIGN CURRENCY TRANSLATION ADJUSTMENT | 122,198 | (249,654 | - | ||||
| TOTAL COMPREHENSIVE (LOSS) INCOME | (1,186,313 | - | 1,167,765 | ||||
| Less: Comprehensive loss attributable to noncontrolling interest | (45,710 | - | (54,451 | - | |||
| COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO | |||||||
| CDT ENVIRONMENTAL TECHNOLOGY INVESTMENT HOLDINGS LIMITED | - | (1,140,603 | - | - | 1,222,216 | ||
| WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES | |||||||
| Basic and diluted | 11,910,635 | 9,810,714 | |||||
| EARNINGS PER SHARE | |||||||
| Basic and diluted | - | (0.11 | - | - | 0.15 | ||
| The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. | |||||||
